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The Stock Lending Agreement serves as a fundamental legal framework for securities financing transactions in the United Arab Emirates financial markets. This document is essential when financial institutions, investment firms, or other eligible entities wish to engage in securities lending and borrowing activities under UAE law. It encompasses crucial elements such as transfer mechanisms, collateral arrangements, corporate action treatments, and default procedures, all aligned with UAE Securities and Commodities Authority (SCA) requirements and relevant federal legislation. The agreement is particularly relevant for entities seeking to enhance portfolio returns, facilitate short selling, or cover settlement failures, while ensuring compliance with local regulatory requirements including SCA Decision No. (48) of 2013 and associated regulations.

1. Parties: Identification of the lender and borrower, including their full legal names, registration details, and addresses

2. Background: Context of the agreement, including the parties' capacity to enter into securities lending transactions

3. Definitions and Interpretation: Comprehensive definitions of technical terms, market standards, and interpretation clauses

4. Loans of Securities: Core provisions governing the lending and borrowing of securities, including initiation process and confirmation requirements

5. Transfer of Securities and Collateral: Procedures and requirements for transferring securities and posting collateral

6. Collateral Maintenance: Requirements for maintaining, monitoring, and adjusting collateral levels

7. Rights and Obligations: Detailed rights and obligations of both parties during the lending period

8. Income and Corporate Actions: Treatment of dividends, voting rights, and other corporate actions

9. Fees and Charges: Lending fees, charges, and payment mechanisms

10. Tax Provisions: Treatment of taxes, including withholding tax obligations

11. Events of Default: Definition of default events and consequences

12. Close-out and Set-off: Procedures for terminating transactions and settling obligations

13. Representations and Warranties: Standard and specific representations by both parties

14. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions